TaxTMI 
TaxTMI 
TaxTMI 
2014 (6) TMI 209
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....ing and handloom cloth, apart from earning income from other sources. It was noticed by the Assessing Officer during the course of assessment proceedings that the assessee deposited huge cash in Axis Bank Ltd. on various dates. On being called upon to clarify the position, it was explained that the assessee was engaged in purchase and sale of old properties on behalf of his customers for commission, which amount was included in the total income. Not convinced, the AO totaled all cash deposits in Axis Bank amounting to Rs. 12,88,630/- and a cheque deposit for a sum of Rs. 1,46,800/-, totaling Rs. 14,35,430/- and added the same to the total income of the assessee. During the course of first appellate proceedings, the assessee submitted variou....
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....in the said bank account totaling Rs. 13,50,057/- represented the amounts of purchase price handed over to the sellers after retaining commission on sale properties. The said explanation given by the assessee before the A.O during remand proceedings has remanded uncontroverted. The Assessing Officer did not call for any further details for corroboration of the stand taken by the assessee before him. It can be seen that the assessee disclosed brokerage commission on property deals in his return of income at Rs. 41,500/-. The position which, therefore, emerges is that the assessee furnished explanation about the debits and credits in his bank account which explanation has not been disputed by the Assessing Officer. Neither the assessee was ca....
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....for the deletion of the addition. 6. After considering the rival submissions and perusing the relevant material on record, it is observed that the assessee tendered an explanation to the effect that he received a sum of Rs. 10 lakh against the tentative purchase of property from Shri Ram Karan Garg, S/o Late Shri Joharimal, resident no. J-23, Reserve Bank Enclave, Paschim Vihar, New Delhi. This amount was received by cheque no. 671150 dated 27.11.2007 which was deposited by the assessee in his bank account. Since, the transaction could not materialize, the amount advanced by Shri Ram Karan Garg was refunded to him. In the remand report the Assessing Officer submitted that this transaction was in contravention of the provisions of Sec. 269S....